Discussing Li Auto's AI strategy

Li Auto plans to increase its investment in AI, and the scope has expanded compared to the NOA autonomous driving. The complete AI landscape will only be known after this cross-day launch event concludes.

At this point, the two important directions in the stock's hosting position have converged. Today, the Hong Kong stock market has not opened, and the US stock night market rising by 2 points does not really indicate much; this is my understanding.

The most direct question is whether there is a possibility of stimulating and driving the stock price in the short term? The short-term bottom for Hong Kong stocks is around 80+, which should be relatively solid. A week before the launch event, the stock price has partially reflected this, reaching 90+. Can it be pushed up further, say to 120? I think we shouldn't have too high expectations. Simply put, while the AI vision has a high ceiling, the competition is equally fierce, and the high capital investment carries significant risks. The product concept is good, and the cognitive ability is strong; over the past year, it has made a remarkable turnaround in NOA AI technology, which is commendable, but still insufficient for the capital market (including myself) to immediately give Li Auto a certain expectation in the AI track.
If we must say that there is a stimulus for the stock price to rise, I think we need to see the content of the next two events, whether they can better stir market expectations, guiding the market to establish a stronger connection between Li Auto and Tesla, with valuation benchmarking against Tesla being the only logic that can significantly stimulate the stock price in the short term. If they can take advantage of the situation and strengthen the AI mindset among potential users, it would also be better to preheat the electric vehicle market and enhance traffic.
How is the success rate of Li Auto in AI? Cautiously optimistic. The optimism mainly stems from the fact that the entire AI sector presents a certain opportunity comparable to the internet and mobile internet level over the next 10 years, which is irrefutable. The cautious reason includes: compared to B2B, a clear industrial logic for B2C has yet to emerge. Even with current domestic ceiling products like Doubao, among my potential seed user group, there are very few users who use it for more than 10 minutes a day. The stickiness of usage and market indicators do not even come close to being phenomenal; whether the determination to invest is sufficient is crucial, as this is a path requiring heavy capital investment. In the short term, it cannot be compared to ByteDance in terms of capital investment and talent density, but it is sufficient to benchmark against Kimi and Deepseek. There is no need to blindly trust background theories; despite the negative views on Baidu, don't forget that there is also Baichuan, which has a good starting line halo.
Specifically regarding intelligent driving, how is AI? Li Auto is daring to think and act, and shareholders consistently give a thumbs up. In 2024, the NOA local battle is a complete victory. End-to-end + VLM, the former allows for overtaking in curves, while the latter puts it completely ahead in the technical route. This launch event, or the surrounding interviews, should release some technical information in this regard (strengthening the AI mindset). If I am not mistaken, in 2025, there should be a significant upgrade in the architecture of these two large models, transitioning from the current glue dual-core to an organic dual-core Just like the dual-core upgrade process of Intel back in the day. This reflects not only innovation in algorithms but also innovation in engineering. The team behind it has expertise across the supply chain, manufacturing, vehicle systems, and AI algorithms.
Don't forget, although Tesla has become increasingly secretive about the details of its technology roadmap after v12, based on various expert interviews, Tesla's V13 also introduces an LLM dual-core architecture on an end-to-end model. Where is Huawei? Where is XP?

Stakeholder: This stock holds 10% $Li Auto(LI.US)$LI AUTO-W(02015.HK) long position, and there may be trading plans in the next week